Refer to Scenario 3. The average total cost of 5 units of output is:

Negative marginal revenue means that

a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases

Figure 4-18

In Figure 4-18, there would be a surplus of T-shirts if the price were

a.
$10.

b.
$8.

c.
below $8.

d.
between $8 and $6.